Bitcoin crash far from over? Experts see another 30% downside to $42,000 | Buy, sell or hold?
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- Bitcoin futures plunged to $58,995 on Thursday, the lowest level since October 2024 and more than 50% below the cryptocurrency's prior peak.
- Jiang Zhuoer, founder of China's LeBit mining pool, forecasts Bitcoin bottoming at $42,000–$44,000 between October and December, per CoinDesk — a roughly 30% further decline.
- IBIT options traded nearly 1.1 million contracts Thursday, almost double the 30-day average, with put volume more than double call volume; estimates put a ~48% chance IBIT falls below $30.5 by month's end, implying another 10% drop.
- Capital rotation into AI stocks is starving Bitcoin of buying demand, with ETF inflows slowing while selling pressure mounts, according to WazirX founder Nischal Shetty.
- The U.S. Dollar Index climbed to a 13-month high, a headwind for Bitcoin given the asset's historically inverse correlation with the dollar, per Mudrex's Prateek Gupta.
- Gupta pushes back on the bearish $42K scenario, arguing Bitcoin would first need to lose the $54,000 support level amid further macro deterioration and heavy liquidations.
Why it matters: With Bitcoin down 50%+ from its peak and the dollar at a 13-month high pulling capital toward AI plays, retail investors weighing whether to buy the dip face a divided expert camp — some predicting a Q4 floor at $42K, others insisting $54K support must break first before that scenario is even on the table.
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